Politics and Tuna: Another Commission That Will Not Lower the Cost of Living?
As part of the war on the cost of living, it was decided to set up a committee headed by Finance Director Ram Blinkov. The committee is supposed to reduce centralization in the food industry. They will not split anything, they will only gain time "
Liat Ron
13/02/2022
Sunday, 13 February 2022, 14:41 Updated: 15:06
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In a few days, the Committee for the Reduction of Centralization and Increased Competition in the Food Industry, established by the Prime Minister, the Minister of Finance and the Minister of Economy, will be established at a press conference at which the economic plan to lower the cost of living last week was presented.
The committee will be headed by the director general of the Ministry of Finance, Ram Blinkov, who previously headed the committee that examined centralization in the quarries industry
.
It is clear to everyone that many months will pass (if not years!) From the moment the committee is established, its authority will be whatever it is, through the submission of conclusions or solutions, to the legislation required to implement them, which will not help the acute situation in the economy
.
A senior economic official involved in regulation in the food industry tells Walla!
The future is already here
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Senior economic source: "It seems that the Treasury is trying to throw out slogans and lower the criticism of the plan they presented" (Photo: Photo Processing, Amos Ben Gershom, Government Press Office)
Why should the State of Israel benefit from the fact that there is no tuna in the country?
We also turned to
Dror Strum, the former antitrust commissioner and now the director of the Economic Planning Institute
, who chaired the Strum Committee, the committee for increasing competitiveness in common banking and financial services, whose conclusions led to a split in credit cards from large banks.
Strum says the idea of setting up a committee to look at how to reduce centralization through dismantling monopolies is very relevant.
"The question is whether the Treasury will have the courage to go with their truth and they will do it. We know very well that without a fundamental change in the food market, there will be no competition here. And negotiate with her, the game is addictive.
There is no single manufacturer, even with an excellent product, that can stand up to Tnuva, Osem or the central company with the power they have. "
Why not use your committee's ideas and convert them into the food market, or just call you to head it?
"This question should be addressed to the director general of the Ministry of Finance.
There is nothing in the idea of splitting monopolies that prevents its application in the food market as well.
The widespread phenomenon of target agreements, in which large food companies link product prices to discounts on aggregate sales, is blocking competition.
To repeal these agreements is a 'no no no' for them, nothing.
They are smarter than us and they will find a way around it.
"The way to resolve this relationship is to understand, split, and say, for example, that in groups with monopolistic factors, such as Tevol or Sunfrost, each of which controls 90% of the market, nothing will happen if they stand on their own two feet and become independent. Barn I need them to make sure the price of the pasta is to her satisfaction. "
The competition authority has no authority to dismantle monopolies?
Why do we need another committee that will take time?
"Under the competition law, giants can be split, but its folds have neutralizing clauses. A monopoly cannot be dismantled immediately. It should be given instructions and examined over time, and the law does not specify how long, and see if it is implemented. To do this and bring in a line within a year - two years, the critical time right now. Such moves require political backing and require legislation. I have dismal experience with political backing unless a minister comes to office with a regular sub on the subject. Usually politicians want more headlines and less to perform.
"You do not have to wait for the committee to start moving things. You can open imports in the meantime, and lower tariffs. On Wednesday evening, Israeli citizens discovered that they pay customs on canned tuna. Why the hell does the State of Israel have to profit from tuna? "Let them buy tuna instead for five dollars and a half dollars, what will happen? Besides, the exclusive agreements that importers have can be handled. It is in the hands of the Ministry of Economy."
Dror Strum, former antitrust commissioner: "Let me buy a tuna instead for five and a half dollars, what will happen?" (Photo: Creative Commons)
Barbibai leaves Lieberman to do the work?
The problem is that the Ministry of Economy is not really at the event.
People who are behind the scenes of the war on the cost of living tell Walla that office workers do actively participate in work meetings, which are supposed to be a record of early work, but do not do enough on a regular basis, if at all.
The senior economic source explains that the economy ministers have the ability to motivate and back up politically, but it seems that Minister Orna Barbibai is happy to leave it to Lieberman and Linkov to do the work for her.
"The Ministry of Economy
has been perceived over the years as the 'Ministry of Manufacturers,'" he says, "those responsible for the cost of living, at least in part. They and the Manufacturers' Association work together, and it is important for them to maintain good relations and attend events and receptions.
The last one to do anything? It was Natan Sharansky, who in 1998 passed the obligation to mark prices. "
Nathan Sharansky.
"The last economy minister to do something" (Photo: Reuven Castro)
Of money
consumption
Tags
Cost of living
Ram Blinkov
Antitrust Commissioner
Naftali Bennett
Orna Barbibai